For some, handbags are just accessories. For others, it’s a valuable item you take everywhere, to hold your most important things. In the past, collecting handbags wasn’t considered a real hobby or passion. However, handbags are known to appreciate in value if properly cared for.
Luxury handbags are becoming increasingly popular. They can be worth thousands of dollars, and the value of the contents inside such as your ID and credit cards can be quite significant if lost or stolen. As such, they are commonly targeted by thieves. That’s why many people are choosing to insure their luxury handbag collections.
No matter what you collect, there are ways to protect your valuable items. We encourage you to speak with your broker as they will be able to work with the best insurance company for your specific requirements. It’s better to know what you have coverage for and be prepared before worst case scenarios happen.
Should you get insurance for your luxury handbag?
At BrokerLink, we work with many customers. Whether you own one designer handbag or have an entire collection, every situation is unique. Some of the benefits of insuring your luxury handbag include:
- You can claim for damage, theft or loss of your item, which provides reimbursement for you to repair or replace your item.
- You will have greater peace of mind and may be more comfortable using or wearing your expensive luxury items.
- Insuring your luxury handbag will reduce the overall cost of regaining your lifestyle, after suffering an incident like theft or damage.
If you experience a theft, the contents stored in your handbag may be covered under your personal insurance. As a result, it may be subject to a deductible amount. Be sure to ask your broker what’s included and what’s not under your policy.
How can you get insurance on your luxury handbag?
Insurance on luxury or collectible items is beneficial to have in the event of theft, fire or water damage. While we hope none of those things happen, it’s always better to be prepared ahead of time.
We always encourage you to talk with your BrokerLink advisor about any policies or collectibles you have. They will be able to work with insurance companies to determine the best solution for your needs. There are typically two ways you can go about insuring a high-end item:
- You may be able to find the right coverage for your designer handbag with your personal home contents policy. In many cases, you will have to pay a deductible in the event of theft. And depending on the insurance company, there may be a loss limit of $10,000.
- Some insurance companies offer a more customized approach to clients who may require a specific insurance plan based on their lifestyle or valuable collections. In these cases, your broker will work with the insurance company to schedule items. Ask your broker about adding a personal articles floater to your insurance.
It’s important to keep in mind that any extra protection to insure your luxury goods may increase your payments, but your broker will be able to explain in detail how your policy will work if this is the direction you take.
Documents for insuring designer handbags
Whether you purchase a luxury item overseas, buy directly from the brand or purchase it pre-loved, there are many points to considerer, including:
- Keep all receipts, scan them and email them to yourself. (If you purchase from the actual brand they will often email the invoice too.)
- Be sure to keep a record of the serial number.
- Take pictures of the item from different angles: the outside, the inside, the serial number and any emblems.
- Many designer brands will keep a record of who purchased the item, so be aware of this if you have received one as a gift.
- There are well-known international appraisers that insurance companies may seek out for help to determine the appropriate value, or they will work directly with the brands.
- Determining proof of ownership is often the trickiest part for insurance companies, as some customers purchase luxury items through personal shoppers. Lack of documents may prolong your claim, so getting as much information at the start will help you in the long run.
- Appraisals are often done to determine not only the value, but because there are many knock- offs out there. The information received from an appraiser is great to have on file.
- It may also be beneficial to have appraisals done if you think your item has appreciated in value, which is often the case with these handbags.
- If your purchase is pre-loved, ask the vendor for any receipts or proof that this is an authentic item. A box and dust bag isn’t enough. You’ll also want to ask them how long they keep records on file in the event of a theft.
If protecting your luxury handbags through insurance is something you’d like to do, it’s important to keep your broker informed. Insurance companies want to make sure your items were legally acquired, so keeping records will be helpful.
Your broker will typically ask you for the items mentioned in the above list, but there may also be additional pieces of information they will need. It’s also a good idea to send pictures, serial numbers and any other details over to them so they can store it under your policy in the event of a theft or damage.
Quick tips on caring for luxury handbags
According to a recent Forbes article, handbags are becoming a better investment than art. If you’re reading this article, you probably want to protect your luxury handbag collection. Here are some tips for taking care of your designer pieces:
- Depending on the leather used, you may need to condition your bag. Avoid DIY products as those may actually harm your leather. Sales associates at luxury boutiques are educated on all things related to the brand, so they will be able to provide you with the best options and cleaning tips to prolong the life of your designer purchase.
- Properly store, stuff or wrap your designer goods when they are not in use. This will allow them to retain their shape and quality. You can also store them in the dust bags they come with to keep them safe from scratches and light. However, be careful to take them out every now and then to keep the leather looking fresh. Or use breathable materials to store them especially if you live in humid climates.
- Inspect your items often to see if there are any stains, scratches or damage. If you spot anything, wipe your designer goods down as needed. It’s also beneficial to rotate through your pieces to give your items a break from everyday wear and tear.
Speak with an experienced insurance broker for the right coverage
Not only is your handbag a fashion statement, everyday it carries your very important items. It’s best to seek professional help on how to get the right coverage for your valuable bits and pieces.
Consult with an experienced insurance broker from BrokerLink to get the right coverage for your needs. We’ll make buying insurance easier by showing you the best options available and helping you find the perfect policy at a great price. Contact us today!
Luxury handbag insurance FAQs
Are luxury handbags covered by my home insurance?
They can be, but there are limits. As described in our article above, handbags can be covered multiple ways. It’s best to consult your licensed broker as they will be able to learn about your needs and wants. Based on your unique situation, a broker will guide you on your options at the best rates.
Is it possible to insure a handbag for wear and tear?
Most insurance policies do not cover wear and tear. Handbags will naturally age with time and how often you use them. Many luxury handbags are made with various leathers, so this alone will age from your skin’s natural oils, the sun and other conditions. Insurance offers protection should something beyond your control impact your possession such as water, fire or theft. Each policy will differ, so be sure to discuss your expectations with your broker as they will better assist you in finding the right coverage to meet your needs. Your broker will be able to reach out to insurance companies and will provide you with an overview of what’s available and at what costs.
Are my gadgets covered if my handbag is stolen?
Some policies will cover only the luxury handbag where as others will actually cover some of the items inside too. The amount of coverage you have will vary by policy and insurer. That’s why it’s important to talk with your insurance broker to learn about your coverage options. Our licensed brokers at BrokerLink will break down the insurance terms for you, so you’ll know exactly what you’re getting.